The House passed HR 1261 Thursday, May 8, 2003. The legislation was nearly identical to the version that passed out of the full Education and Workforce Committee in April with the following notable differences:

Youth

• The age for out of school youth (70% of the formula funds) was raised to 24
• The funding formula was altered for WIA. Only funds allotted over the amounts allocated for FY 2003 shall be allocated according to the new formula. Funds in excess of funds allocated of FY 2003 shall consider 1) local number of youth (ages 16-19) in the labor force; 2) local unemployment rate; and 3) disadvantaged youth (ages 16-21).
• The authorization level for the youth formula has been increased to $1.25 billion from the Committee’s authorized level of $1.001 billion. The 25% set aside, up to $250 million, for the Secretary’s Challenge Grants, would still apply. In essence, if Congress were to appropriate the full authorization, this would mean a zero sum gain. However, if Congress appropriates less than the full $1.25 billion authorized level, the youth formula would be cut by 25% to pay for the Challenge Grants.
• Procurement of youth services shall be based on a competitive basis unless the board determines that there are an insufficient number of eligible providers to provide youth services to the area (such as in rural areas). Under such circumstances, awards and grants may be made on a sole-source basis.
• The bill includes a provision that considers participation in or eligibility for free or reduced lunch for determining low-income status and eligibility for the in-school program.

Adult

• The bill passed by the full House revises the formula for allocation of funds to states under the consolidated funding stream. The amendment includes a hold-harmless provision for states so that in each year each state will receive at least what that state would have received under the current formulas for the three adult employment and training programs. The new formula creates a two-part formula reflective of population to be served. The hold harmless that appears to be built into this would minimize impact and swings in the funding.

One Stop Centers

• An amendment passed May 8 clarifies the methodology for determining the contributions that one-stop partner programs will make to the costs of infrastructure of the one-stop career center system. It requires that, when making the determination regarding the funds to be contributed, the Governor, in consultation with the State board, consider: the proportionate use of the one-stop centers by each partner; the costs of administration unrelated to the use of the one-stop centers by each partner; and other relevant factors. It also requires that the funds provided by the one-stop partner programs for the infrastructure costs are to be provided from funds available for administrative costs under each program and that those funds shall be subject to whatever administrative cost limits are applicable to each program.